Karachi, August 12, 2021 (PPI-OT): View from the desk

After trading between the range of 47,556 and 47,175 points, the KSE100 eventually closed at 47,271 level, posting a loss of 107 points for the day. TRG (2.3%), GGL (0%), WTL (-1.7%), TPLP (-6.4%) and BYCO (-0.8%) topped the volume chart today. On the news front, the Federal Minister for Planning and Special Initiatives opposed the approval of the Refinery Policy, arguing that the Cabinet Committee on Energy (CCOE) was the right forum to take up refining policy. ATRL (-1.9%), NRL (-1.9%) BYCO (-0.8%) and PRL (-1.5%) all lost ground and eventually closed in the red zone.

In the ongoing result season, MEBL (3.7%) announced its half-year earnings of Rs9.00 per share with an interim cash dividend of Rs1.50 per share and Bonus issue of 15%. Going forward, the market is expected to further correct amid lack of triggers and thin volumes. Investors are advised to exercise caution and adopt a buy on dips strategy in Steel, Technology, Cement and Auto sectors.